It started with a simple looking letter – and still hasn’t ended even after six months of worry.

The first sign that Sam had been a victim of ID fraud was a letter on plain white paper with little branding, saying that he was behind on payments for a payday loan: “The letter looked like it could have been mocked up by anyone. But I rang the company, just in case. And not only were they for real, they said I owed £500. They just didn’t believe me when I said I hadn’t taken out the loan – they insisted it was in my name using my details.”

The loan company insisted that all the authentication checks as part of their application process had been passed – even though it turned out that the date of birth used wasn’t Sam’s. They also said they had called Sam on the number in the application to confirm release of the money – although this wasn’t Sam’s number so hardly proved anything. The clinching fact seemed to be that that the person impersonating Sam had set up a payday loan previously and paid it back in full – but this is a tactic fraudsters sometimes use to build up credibility with lenders so they can borrow (and steal) more later.

Seven more applications on his credit report

Sam signed up with us. “When I checked my credit report with ProtectMyID, I realised things were even more serious than they seemed. There were seven more applications for credit to pay day loans companies in my name, using my details. But I hadn’t made any of them. I felt at a complete loss.

“Someone was going round, pretending to be me, trying to borrow money in my name. I was so desperate, I even thought about paying off the £500 debt just so that I could sleep easier. But I couldn’t bring himself to pay a debt that was down to a criminal.”

We stepped in to help and found that several of the companies showing on his credit report had turned the applications down because of signs of fraud in the application process – something that would make it hard for Sam to legitimately get credit.

“ProtectMyID helped me get in touch with the other lenders, and several asked me to sign declarations that the applications were fraudulently in my name – and once I had, they removed all sign of them from my credit report.

“It was all very alarming though – the companies often wanted personal details to verify what I was saying, but I was worried about giving these to people I’d never heard of and had no dealings with.”

Court action starts

While everything else was sorted out, the original pay day loan company continued to contact Sam, saying that they thought he had applied for the loan and insisting he pay it back. The total amount they were asking for was going up and up as costs and charges were added on for non payment.

Eventually, Sam received a letter saying that the company had filed to take him to court over non payment of the debt. The court helped him fill in a witness statement.

After further investigation, Sam and the ProtectMyID Victims of Fraud team found out that the loan was paid in to an account with a bank that he doesn’t use –an account that wasn’t even in his name. But the bank said they couldn’t help further unless the payday loan company stated that the account had been used fraudulently. And it refused, because it still claimed that Sam was responsible.

At least his credit report is restored

Sam has spent hours working with the ProtectMyID team: “Thanks to their help, my credit report and financial standing are restored to how they were before the fraud was committed. But I’m in limbo, waiting for a court case that has been scheduled 6 months after the first letter I got. I’m also shocked that the onus seems to be on me to prove my innocence. The company should have to prove it if they claim I took out a loan and failed to pay it back.”

Lessons learned

So what would Sam do differently now? “The fraudster may have got my date of birth slightly wrong – but he knew enough about me to convince a lender that he was me and ran up debts in my name. I’m now much more careful about my personal details – I was paranoid even about giving them to the lenders the fraudster targeted to clear my name.

“The one specific thing I wish I had done was check my credit report regularly. The signs that I had been targeted were all there, with multiple applications in my name over some time. If I’d spotted that early on, I could have approached the lenders first.

“If I’d done that, maybe I wouldn’t be sitting here fretting about a court case where a judge could find me guilty of something I haven’t done. I’m the victim – but I’m the one who may end up paying.”